Cookie Advantage Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$92,550 - $171,250
Franchise Fee
$34,900
Total US Locations
23
Business Summary
Cookie Advantage businesses sell cookies, cookie cups, and related goods primarily as gift items. These products are marketed to businesses and individuals who want to express appreciation to customers or gather customer feedback. Franchisees sell the Cookie Advantage program to business customers, then prepare, bake, and package the cookies for mailing or pickup, often including customized messages or logos. Each business operates from an approved retail bakery location.
Corporate History
Cookie Advantage, Inc. was formed as an Oklahoma corporation on October 15, 2001. The company began offering franchises for Cookie Advantage businesses in January 2002. Cookie Advantage, Inc. does not operate any businesses like those described in the FDD, nor does it conduct any other business apart from franchising Cookie Advantage Businesses. Its affiliate, KDKC, Inc., operates six similar businesses.
Financial Overview
Investment Range
$92,550 - $171,250
Franchise Fee (Low)
$34,900
Franchise Fee (High)
$34,900
Royalty %
6%
Equipment Costs (Low)
$24,950
Equipment Costs (High)
$80,000
Working Capital
$7,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Cookie Advantage, Inc. received an unqualified audit opinion, but the auditors noted a "going concern" qualification. This means there is substantial doubt about Cookie Advantage, Inc.'s ability to continue operating due to recurring losses and a net capital deficiency (negative working capital). For the year ended December 31, 2024, Cookie Advantage, Inc. reported a net loss of $21,791. The company also had negative working capital of approximately $112,739 as of December 31, 2024. To address these issues, management plans to increase revenue through additional franchise sales, improve operating margins by reducing costs, increase sales to current franchisees, and pursue additional capital through debt or equity financing. The ability of Cookie Advantage, Inc. to continue as a going concern is dependent on the success of these plans to generate sufficient revenue and obtain additional capital.
Financing Details
Cookie Advantage does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
23
Franchised Units
17
Corporate Units
6
Avg Square Footage
1,100
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cookie Advantage has no litigation history to report as no litigation is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
Cookie Advantage has no bankruptcy history to report, as stated in Item 4 of its FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Cookie Advantage franchisees must provide timely written notice, be in full compliance with the current franchise agreement, and sign a new franchise agreement (which may have different terms). They must also sign a general release (if allowed by law), update their bakery's appearance and equipment to meet the current standards for new franchisees, and pay a renewal fee of $2,900. Renewal involves entering into one additional successor term of five years.
Training & Support Program
Franchisor Assistance
Cookie Advantage provides a range of assistance and services to its franchisees. Before opening, the company helps with territory designation, provides site selection guidelines, offers mandatory and discretionary specifications for the bakery's design, and identifies approved equipment and supplies. Franchisees receive an initial training program (Initial Training Program) at the Cookie Advantage headquarters in Bixby, Oklahoma, or another designated location, followed by a Pre-Opening Training Program at their bakery. The company also loans or makes available a Confidential Operations Manual. Once open, Cookie Advantage provides ongoing consultation on operations, sales techniques, and customer relations, and updates the Confidential Operations Manual with new system standards. The company also maintains and administers a system website with local pages for each business. Additional training for new hires or refresher courses is available for a fee.
Initial Training Hours
44
Training Location
Bixby, Oklahoma
Ongoing Support
After opening, Cookie Advantage franchisees can request consultation on business operations, sales, product supply, and customer relations during regular business hours, receiving advice via written materials, electronic media, or phone. The company continues to loan or make available its Confidential Operations Manual, which includes updated system standards. Cookie Advantage maintains a system website with individual local pages for each business. Franchisees, owners, and managers are required to attend periodic training courses and any annual conferences, with associated travel and expenses paid by the franchisee. Additionally, refresher training programs may be required annually at the franchisee's expense.
Franchise Requirements
Ideal Candidate Profile
Cookie Advantage seeks franchisees who will be actively involved in the day-to-day operations of their Cookie Advantage Business. This can be an individual franchisee, or if the franchisee is an entity, a managing owner who holds at least one-third ownership and voting power. Cookie Advantage may also, at its discretion, allow a designated manager to run the daily operations, and this manager may be required to have an ownership interest in the franchisee entity. All managing owners and designated managers must successfully complete Cookie Advantage's training program. Additionally, all owners and their spouses must sign an Owners Agreement guaranteeing the entity's financial obligations. Employees or independent contractors with access to confidential information must sign system protection or confidentiality agreements.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Cookie Advantage grants a protected territory to its franchisees based on geographic area, population density, and relevant demographic characteristics. The company uses commercially reasonable efforts to grant only one franchise per area with a population of up to 1.5 million people. Population statistics are derived from current U.S. Census reports and other chosen sources. Territories in densely populated metropolitan areas may be smaller due to high population density, while less densely populated urban areas may have larger territories.
Staffing Notes
Cookie Advantage businesses must be managed by the franchisee, or if the franchisee is an entity, by a managing owner with at least a one-third ownership and voting interest. Alternatively, a designated manager may be appointed if approved by Cookie Advantage, and this manager may be required to have an ownership interest in the franchisee entity. All managing owners and designated managers must successfully complete Cookie Advantage's initial training program. If a designated manager is replaced, the new manager must complete training at the franchisee's expense. Franchisees are solely responsible for all employment decisions, functions, and compliance with employment laws for their employees and independent contractors. Employees and independent contractors who have access to confidential information must sign a confidentiality agreement.